I have recently joined MMD and am looking at doing some drop shipping. I live in Canada and was wondering, if my drop shipper is in China, how does the import taxes work if they ship to Canada or the US?
The person who it is addressed to will have to pay the import tax, so if you send it directly to your customer they will have to pay for it. Normally they will have to pay when it is delivered. For couriers, they usually notify recipient (by phone) of the tax due before they deliver it. Not sure how the post office handles it though. You should let the customer know it's their responsibility to pay any and all import tax and duty prior to them paying. Have a look at some ebay listing and you can see what the sellers usually say in their disclaimer.
Yeah, sometimes you get lucky and they don't charge the import tax. In America you're more likely to get charged (based on my experience) if you use one of the courier services like dhl, but by US post office they don't always collect the tax.